Buying Broadcom At A Discount

By Bargain Bin:Broadcom (BRCM) is a leading designer of semiconductors used in networking, broadband, and mobile devices. The company's main competitors include Qualcomm (QCOM) and Texas Instruments (TXN). One of their more prominent products are chips which combine various communications standards such as bluetooth, WiFi, and GPS.(click to enlarge)
* Full presentation here (PDF FILE)Broadcom chips are used in a plethora of devices, as seen in the above graphic, leading to nearly all data traffic crossing a Broadcom chip. And the rise of mobile devices such as smartphones and tablets along with the subsequent increase in total internet traffic should be a boon for the company.

(click to enlarge)

BRCM data by YChartsShares of Broadcom currently trade for $34.38, down from the high 40's at the beginning of 2011. Here's the 5-year financial performance:

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By Wall Street Playbook:The gains we've seen in chip stocks this year are not up to par with 2013 performances. Even so, it's hard to not like their prospects. At some point, there will be a recovery, given that the market for smartphones and mobile devices has yet to plateau.

By BubbleBustInvesting:Anyone who follows closely the charts of Qualcomm (QCOM) and Texas Instruments (TXN) has probably noticed that Qualcomm has been beating Texas Instruments in the long-run, while Texas Instruments has been beating Qualcomm in the short-run. Does it mean that the two stocks are about to trade places?

By Jin She:Qualcomm (QCOM) shares plummeted ~17% from its 52-week high of ~$68 in April primarily driven by the overall market weakness. My relative and absolute valuation models show that QCOM is undervalued at the current price level.

BubbleBustInvesting.com submits:In a previous piece, we argued that Intel (INTC) is a good buy for the upcoming earnings season, because of its low valuation, solid company and industry fundamentals, and high dividend payout.

By Dana Blankenhorn: Everybody knows Moore's Law. Chip densities double every 12-18 months. The amount of bang for your buck you get from chips gets better-and-better, faster-and-faster. But few understand Moore's Second Law. It's a corollary to the first. It states that as chip densities double, so does the capital demands for producing them.

By Trefis:
Qualcomm (NASDAQ:QCOM) is expected to announce its fiscal year Q3 earnings on July 20th. During the last quarter, competition has heated up as the demand for smartphones and tablets continues to grow.

Trefis submits:
Qualcomm (NASDAQ:QCOM) is expected to announce its fiscal year Q2 2011 earnings on April 20th. Two particular developments that warrant a closer look are the performance of multi-mode chipsets and the outlook for Qualcomm’s royalty rates.

Trefis submits:
Qualcomm’s (NASDAQ:QCOM) prices for mobile phone chips have declined in the past few years from around $22 in 2005 to around $18 in 2009 by our estimates. [1] We expect this downtrend to continue, albe